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1994 Supreme(Bom) 87

IN THE HIGH COURT OF BOMBAY
D.R. Dhanuka, J.
Murlidhar Bapuji Valve.... Appellant.
Versus
Yallappa Lalu Chaugule, Since deceased by his heirs
Legal Representatives .... Respondents.
First Appeal No. 112 of 1983, decided on 18-2-1994.
Advocates appeared :
M.V. Sali, for appellant.
P.A. Pol, for respondent Nos. 1(B), 1(D), 1(E).
Mohan Pungalia, for respondent No. 3.

Headnote:BENAMI TRANSACTIONS (PROHIBITION) ACT, 1981

       Section 4 (1)-Scope of.

       Section 4 (1) of the said Act provides that no suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property. This is not a suit filed by defendant No. 1 or on behalf of defendant No. 1 against defendant No.2 or the legal representatives of defendant No.2. This is a suit filed by a third party for specific performance of the suit contract against the real owner as well as benamidar. Held, that Section 4 (1) of the above referred Act has no application to the claim made in the suit.

       Sections 18 and 23- Validity of admissions.

       Defendant sold land with recital that one is real Owner another is benamidar. On admission transferee can rely even if party admitting not confronted with statement.

       Sections 5 and 9-Contract-Essence of-Price-Payment of-Delay - For payment any specific time not fixed-Selling of land to third party held breach of contract because time was not essence of contract.

       Section 19 (b)-Transfer of Property Act, 1882-Section 3 - Land-Selling of to parties-Subsequent purchaser made no enquiry about possession - possession would operate a constructive notice of previous sale-Transferee could be said to be bonafide for value without notice.

       If there is an encumberance on the suit property and a provision is made for discharge of such encumberance from part of sale price, it may not be possible to conclude that such an adjacent or arrangement does not amount to "payment of price" by the purchaser to the vendor. In view of the finding of the Court that the defendant No.3 has constructive notice of suit agreement and defendant No.3 is not entitled to avail of the exception contained in Section 19 (b) of Specific Relief Act, 1963, it is not necessary to decide this aspect of the mailer conclusively.

       The trial Court was right in holding that having regard to the totality of facts and circumstances emerging from the record, the defendant No. 3 can not be held as a bona fide purchaser for value without notice.

       TRANSFER OF PROPERTY ACT, 1882

       Section 3-See Specific Relief Act, 1963, Section 19 (b).

JUDGMENT -D.R. DHANUKA, J.:—This appeal is directed against the judgment and decree dated 2-3-1982 passed by 4th Joint Civil Judge, Senior Division, Pune in Special Suit No. 127 of 1966. The appeal has been filed by the original plaintiff as the trial Court has decreed the suit for specific performance filed by the plaintiff only in part and not in its entirety. During the pendency of the suit, the original defendant Nos. 1 and 2 died. The heirs of original defendant Nos. 1 and 2 are brought on record of the suit and are impleaded as the respondent Nos. 1 and 2 in this appeal. The respondent No. 3 in the appeal was original defendant No. 3 in the said suit. The respondent No. 3 claims to be subsequent transferee for value without notice. The respondent No. 3 has filed Cross-objections as permissible under the Code of Civil Procedure. The respondents No. 1 and 2 i.e. the heirs and legal representatives of original defendant Nos. 1 2 have not filed any objections against the findings recorded by the trial Court in favour of the appellant herein. The parties to the appeal are hereinafter referred to as the original plaintiff, original defendant Nos. 1 and 2 and original defendant No. 3.

2. On 29-8-1966, Murlidar Bapuji Valve, the appellant herein, (i.e. the original plaintiff) filed Special Suit No. 127 of 1966 in the Court of Civil Judge (Senior Division) Pune seeking specific performance of an agreement to sell dated 14-2-1966 arrived at between the plaintiff and original defendant Nos. 1 and 2. The plaintiff impleaded Madhavrao Baburao Kathilkute as defendant No. 3 in the said suit in view of defendant No. 3 claiming to be subsequent purchaser of the suit property under sale deed dated 4-8-1966 executed by original defendants Nos. 1 and 2 in favour of defendant No. 3. The plaintiff contended that the defendant No. 3 was not a bona fide purchaser for value without notice of contract dated 14-2-1966. The defendant No. 3 contended that the defendant No.3 was a bona fide purchaser for value without notice. The plaintiff also made an alternative claim in the plaint for refund of various amounts paid by the plaintiff to original defendant Nos. 1 and 2 and for damages. The defendant No. 1 filed his written statement in the suit. The defendant No. 1 contended that the plaintiff had no right to seek specific performance of the suit agreement as the plaintiff has no funds at the material time and as the period of the suit agreement had expired. Thus the defendant No. 1 disputed that the plaintiff was ready and willing to perform the suit contract at all times. The plaintiff has contended throughout that simultaneously with execution of the suit agreement i.e. on 14th February, 1966, the defendant Nos. 1 and 2 had handed over actual possession of the suit lands to the plaintiffs as stated in the suit agreement itself and since then the plaintiff is in actual physical possession of the suit lands. The plaintiff contends that the defendants No. 1 and 2 handed over possession of the suit lands in favour of the plaintiff. In his written statement, defendant No. 1 denied that the defendants Nos. 1 and 2 had handed over possession of the suit lands to the plaintiff. The plaintiff contended in the plaint that immediately after taking possession of the suit lands in part performance of the agreement, the plaintiff had ploughed the lands and made development therein. The defendant No. 1 disputed the correctness of this averment. The defendant No. 1 contended that the defendant No. 1 had rightly executed the impugned sale deed in favour of defendant No. 3 as the plaintiff had committed breach of the suit agreement and the suit agreement was therefore required to be cancelled and actually cancelled. According to the version of defendant No. 1 in the written statement, the defendant No. 3 is in possession of the suit lands since 4-8-1966. The defendant No. 3 filed his written statement in the suit. The defendant No. 3 contended that on the date wh















































































































































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